Busting Some Myths About Wage Garnishments

Think you know wage garnishments? You probably know the basics: When a debt is owed, an employer receives an order requiring them to withhold a portion of an employee’s wages.

But are they really that simple? Not really—not simple to understand or to administer. Let’s dispel a few myths about wage garnishments.

Aren’t all wage garnishments essentially the same?

Aren’t all wage garnishments essentially the same?

No, they’re not—not by a longshot. Wage garnishments are withheld from paychecks for a variety of reasons, including bankruptcy or for the payment of creditors, child support, taxes or student loans.

Each type of garnishment is different, but so is the process for handling them, which can vary from agency to agency, court to court, and state to state. If you’re an employer, it’s challenging to stay abreast of the laws, rules and regulations that apply, to say the least. And when you have employees working in multiple locations, it only gets harder.

But aren’t wage garnishments rare?

Not at all. Between 2011 and 2013, the ADP Research Institute® analyzed a large pool of anonymous payroll data—almost 13 million employees age 16 and older. What they found paints a pretty clear picture of the wage garnishments landscape.

To read the remainder of the article click here

An infographic was designed using the stats collected and shared below.

 

V3_ADP-Top-5-Wage-Garnishments-Myths-01-768x3288 (1)

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From our first account in Paterson, N.J., to the more than 610,000 clients we serve around the world today, ADP helps organizations of all types and sizes unlock their business potential. For 60 years, we’ve led the way in defining the future of business outsourcing solutions. And we remain one of the world’s most innovative, diverse and admired companies to work for today. We are a comprehensive global provider of cloud-based Human Capital Management (HCM) solutions that unite HR, payroll, talent, time, tax and benefits administration, and a leader in business outsourcing services, analytics and compliance expertise. Our unmatched experience, deep insights, and cutting-edge technology have transformed human resources from a back-office administrative function to a strategic business advantage. Learn more about our philosophy, success factors, and why companies work with ADP.

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From our first account in Paterson, N.J., to the more than 610,000 clients we serve around the world today, ADP helps organizations of all types and sizes unlock their business potential. For 60 years, we’ve led the way in defining the future of business outsourcing solutions. And we remain one of the world’s most innovative, diverse and admired companies to work for today.
We are a comprehensive global provider of cloud-based Human Capital Management (HCM) solutions that unite HR, payroll, talent, time, tax and benefits administration, and a leader in business outsourcing services, analytics and compliance expertise. Our unmatched experience, deep insights, and cutting-edge technology have transformed human resources from a back-office administrative function to a strategic business advantage.
Learn more about our philosophy, success factors, and why companies work with ADP.

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